The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses* Total fixed expenses Net operating income (loss) *Allocated on the basis of sales dollars. Total $ 920,000 Dirt Bikes 461,000 459,000 $ 268,000 115,000 153,000 Mountain Bikes $ 401,000 196,000 Racing Bikes $ 251,000 150,000 205,000 101,000 69,500 8,800 40,100 20,600 43,400 20,700 7,500 15,200 114,800 40,100 38,300 36,400 184,000 53,600 80,200 50,200 411,700 123,200 166,100 122,400 $ 47,300 $ 29,800 $ 38,900 $ (21,400) Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or n the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 2. Should the production and sale of racing bikes be discontinued? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Financial (disadvantage) per quarter Required 1 Required 2 >